Mistral AI, the French company behind AI assistant Le Chat and several foundational models, is gaining recognition as one of France’s most promising tech startups. It stands out as one of the few European companies capable of competing with OpenAI. However, despite its impressive US$6 billion valuation, its global market share remains relatively small.
The recent launch of its chat assistant on mobile app stores has generated excitement, particularly in France. Even French President Emmanuel Macron voiced his support, encouraging people to download Le Chat instead of ChatGPT. However, while Mistral AI is gaining attention, it still faces significant challenges in competing with industry giants like OpenAI. It also aims to uphold its commitment as “the world’s greenest and leading independent AI lab.”
Mistral AI’s models and technology
Founded in 2023, Mistral AI has secured significant funding and aims to make advanced AI accessible to everyone. While not a direct challenge to OpenAI, its vision emphasises openness in AI development.
Mistral AI’s alternative to ChatGPT, Le Chat, is now available on iOS and Android. Within two weeks of its release, it reached 1 million downloads and became the most downloaded free app on France’s iOS App Store.
In addition to Le Chat, Mistral AI has developed a range of models, including:
- Mistral Large 2 – The main large language model is replacing Mistral Large.
- Pixtral Large – A multimodal model introduced in 2024 as part of the Pixtral family.
- Codestral – A generative AI model designed for coding tasks.
- Les Ministraux – A series of models optimised for edge devices like smartphones.
- Mistral Saba – A model focused on the Arabic language.
How Mistral AI makes money
While many of its offerings are free, Mistral AI has introduced revenue-generating services. In February 2025, it launched Le Chat’s Pro plan, which costs US$14.99 monthly.
On the business-to-business (B2B) side, Mistral AI monetises its advanced models through API access with usage-based pricing. Enterprises can also license their models, and the company benefits from strategic partnerships showcased at the Paris AI Summit. Despite these efforts, Mistral AI’s revenue remains in the eight-digit range.
Key partnerships and prospects
Mistral AI has established several meaningful partnerships. In 2024, it secured a strategic agreement with Microsoft, allowing its AI models to be distributed via Microsoft’s Azure platform. As part of the deal, Microsoft invested €15 million in the company. The U.K.’s Competition and Markets Authority (CMA) reviewed the agreement but found it too small to warrant an investigation. However, the deal received some criticism from the EU.
More recently, in January 2025, Mistral AI signed a deal with Agence France-Presse (AFP). This agreement allows Le Chat to query AFP’s extensive text archive, which dates back to 1980, offering users access to a vast collection of news content.
Mistral AI continues to expand its influence, but whether it can truly rival OpenAI globally remains to be seen.
